21/6 – Brexit makes for exciting trading conditions

Today was a really interesting day in the markets for me.

As I have been writing on this blog – currently I am spending the majority of my time testing a 1-hour timeframe based strategy.  At the same time, I am trading this strategy live over 30 different instruments.

I opened two positions yesterday, going long (buying) GBPCHF and shorting (selling) USDCAD.  Both of these were still open this morning, with a slight net profit across the two positions.

As the morning took its course, I added five more positions (three at 9am, one at 10am and one at 11am) – each one with a risk of £150.  The positions started to head in the directions that I was favoring, on the basis of my setups.  Thus at 1:30pm I was up around £500-£550 across my seven positions – which equates to 3.5 units of risk (525/150).

As I mentioned in today’s other blog post, a fresh Brexit poll turned my positions rather sour very quickly.

My strategy said that I should continue holding the positions.  However, as I had just gone from +3.5R to -0.5R in the space of ten minutes, it was a bit too much too bear and I decided to close all positions with a quick click of the button on my FXCM platform. UPDATE: On Wed morning, I quickly reviewed the charts to see how the trades would have played out, had I stuck to the guns of my strategy – findings from the analysis were as follows:

jun21 comparison

One of my trading colleagues in the office and I have a mutual understanding, that on the first day on which I hit £1,000 of profits, will be the day on which I will quickly buy a bottle of champagne for us to drink before the end of the trading session. Sadly today was not going to be the day, after comfortably getting to the half-way mark.  Interestingly, had the poll results been more favourable (“favourable” as to what the market participants want to see), then I probably would have hit the £1k target rather quickly.

Anyways, the main lesson for today …….

I am realizing that the actual trading results are starting to concern me less.  On most days a big win, or a big loss, in a trading session would have a big psychological impact on me.  Today’s swing didn’t actually have a big impact on me.  I am much more concerned with the testing results that I am generating.  That’s because the testing results will give me much more indication of the strategy’s effectiveness and potential profitability than a single trading session.  Thumbs up for the testing I guess!

 

trading screen

 

 

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